Grand Banks and Palm Beach will grant each other options under the deal, Grand Bank said in a statement on Friday.

When the options are executed, Grand Banks will buy all of Palm Beach's shares for up to A$8.0 million (S$9.4 million) in cash and A$2.0 million in new Grand Banks shares to be issued.

The deal will strengthen Grand Banks' position as "a global company with two world-class brands that are well represented in the leading markets of North America, Australia, Asia and Europe", the company said.